WEBVTT - Commerzbank Drops , IAG Falls, Rheinmetall Slips

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News.

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<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

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<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 3>Let's take a look at some of the stocks on

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<v Speaker 3>the move today in Europe. I'm James Wilcock with Caroline Hepker,

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<v Speaker 3>and we're joined by Bloomberg reporter Chloe Melly Chloie. Let's

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<v Speaker 3>start a commerce bank. They reported ownings today is their

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<v Speaker 3>latest update, going down well with investors.

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<v Speaker 4>Not super super well.

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<v Speaker 1>So Commas Bank raised its outlook for the year, also

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<v Speaker 1>outlined some new medium term targets and it announced three

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<v Speaker 1>thousand drop cuts. And so all of this comes at

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<v Speaker 1>a very critical time in this UniCredit Commers Bank takeover SAGA,

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<v Speaker 1>because this week Credit took its offer directly to the

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<v Speaker 1>Commons Bank shareholders and so Commas Bank throughout this whole

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<v Speaker 1>takeover SAGA has been banking on the strategy of really

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<v Speaker 1>raising targets, of boosting investor payouts to put the stock higher,

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<v Speaker 1>and through that essentially making a deal more expensive for

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<v Speaker 1>UniCredit and therefore convincing investors that Commons Bank is actually

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<v Speaker 1>better off as a standalone entity. And so so far

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<v Speaker 1>that's actually worked and pushing against unicredits advances.

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<v Speaker 4>But we can see the limits of.

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<v Speaker 1>That strategy today because Commers Bank shares are actually lower

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<v Speaker 1>this morning because some investors are seeing the new targets

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<v Speaker 1>as perhaps a little bit too ambitious. So we're now

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<v Speaker 1>seeing some skepticism and that does play into the hands

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<v Speaker 1>of UniCredit, although unicredits offer is actually really unlikely to

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<v Speaker 1>be taken up by.

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<v Speaker 4>A large number number of commons.

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<v Speaker 1>Bank investors, so we'll be watching out for any developments

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<v Speaker 1>there as well.

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<v Speaker 5>Okay, let's pivot to the airlines industry, so we get

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<v Speaker 5>the last of the big European names reporting today. IAG

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<v Speaker 5>some difficulties there after. We had to Deutsche Left, Tanta

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<v Speaker 5>and France Kerlen talking about fuel bills. What did IAG say, Yeah, it.

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<v Speaker 4>Was very much the same issue for them as well.

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<v Speaker 1>So they expect profit and free cash flow for this

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<v Speaker 1>year to be lower than previously expected because of of course,

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<v Speaker 1>as you mentioned.

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<v Speaker 4>Those higher fuel costs. So it has.

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<v Speaker 1>Submits that it will pay about two billion euros more

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<v Speaker 1>for fuel in twenty twenty six and that leads to

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<v Speaker 1>a total bill of about nine billion euros. And so

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<v Speaker 1>this is as you said, the latest airline in Europe

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<v Speaker 1>to warn about the impact of the Iran war on

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<v Speaker 1>its outlook. A lot of companies that within that sector,

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<v Speaker 1>I've had to cancel flights, They've had to reduce some routes,

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<v Speaker 1>decommission older planes as well, and that happens just as

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<v Speaker 1>they enter the very important, very lucrative summer travel season

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<v Speaker 1>as well. Another important thing to note from IG today

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<v Speaker 1>is that it did say it was exploring opportunities for

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<v Speaker 1>consolidation and that it had been approached by other airlines

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<v Speaker 1>looking to discuss potential options given the current market pressures.

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<v Speaker 4>So that's quite interesting.

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<v Speaker 1>But it seems that investors are a lot more focused

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<v Speaker 1>this morning on the weaker outlook rather than the M

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<v Speaker 1>and A possile abilities laid down the line, and so

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<v Speaker 1>we are seeing the shares quite weak this morning for IAG.

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<v Speaker 4>And finally Ryemetteller falling. What's behind that drop.

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<v Speaker 1>That's a downgrade, So they got downgraded to a neutral

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<v Speaker 1>rating by JP Morgan, and the analysts have also slashed

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<v Speaker 1>the price target on the stock, and the analysts have

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<v Speaker 1>said that Ryan Mattau is finding it quite difficult to

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<v Speaker 1>grow as fast as it would like and that some

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<v Speaker 1>investors have started to question where the Ryan Mettel actually

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<v Speaker 1>has the right product portfolio. They said that the company

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<v Speaker 1>has started to miss its own quite ambitious targets, with

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<v Speaker 1>four misses in the past six months, and the latest

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<v Speaker 1>results actually that we had a few days ago that

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<v Speaker 1>actually did miss estimates. JP Morgan is still positive on

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<v Speaker 1>the outlook for the German defense spending, seeing at least

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<v Speaker 1>five years of really strong growth for Rye Mattau and

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<v Speaker 1>military spending in general is still very much top of

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<v Speaker 1>the agenda for governments around the world because of all

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<v Speaker 1>the geopolitical uncertainty that we have.

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<v Speaker 4>But there is clearly quite a bit of caution around.

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<v Speaker 1>Environmental at the moment, and we can see that reflected

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<v Speaker 1>in weakness in the chase throughout the beginning of this

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<v Speaker 1>year and today as well.

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